General Mortgage KnowledgeQuestion 100 of 400
A borrower earns $8,000 gross per month. PITI is $2,000, and other monthly debts total $800 (car $400, cards $200, student loan $200). What is the back-end DTI?
a.25%
b.28%
c.30%
d.35%
Explanation
Back-end DTI = (PITI + other debts) / income = ($2,000 + $800) / $8,000 = 35%. 25% is the front-end ratio (2,000/8,000); the others omit part of the debt.
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